Global bond yields surge as oil prices rise


The global sell-off in government bonds continued, with yields rising to their highest levels in years amid higher oil prices, which fueled expectations of interest-rate hikes by central banks.

 

The yield on South Korea’s three-year debt rose 11 basis points (bps) to 4.13%, its highest level since 2022. Japan’s two-year bond yield also rose 4 bps to 1.975%, its highest level since 1995.

 

The moves came as oil prices rose after US President Donald Trump rejected an Iranian proposal submitted last week to reopen the Strait of Hormuz.

 

Changes in 10-Year Government Bond Yields

Bond

Yield (%)

Change (bps)

US

5.209

+2.8

UK

5.40

+3.5

Japan

3.086

+0.5

*At 09:04 am Makkah time.

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